Regional Productivity and Convergence in Bangladesh Agriculture

This paper applies the sequential Malmquist index to calculate multi-lateral, multi-factor productivity (MFP) indices for agriculture in 16 regions of Bangladesh from 1964 to 1992 and examines convergence amongst regions. Productivity grew at an average rate of 0.9% per annum, led by regions with high level of Green Revolution technology diffusion. The growth mainly occurred due to technological progress estimated at 1.9% per year. Overall technical efficiency declined steadily at 1.0% per year due to falling efficiency in most of the regions in later years. Both cross-section and time-series tests confirm that divergence among regions disappeared and agricultural productivity reached convergence in the long-run. Policy options to reverse declining efficiency are considered. These include: strengthening of extension services, improvements in rural infrastructure, widening of R&D activities to non-cereals, and promotion of new technologies.